The Australian Energy Market Commission (AEMC) has reached a final decision regarding Snowy Hydro Limited’s (SHL) claim for compensation under clause 3.14.6 of the National Electricity Rules (NER).

The claim was submitted following the application of the administered price cap during an administered price period in June 2022. 

The relevant rules outlined in the NER and the AEMC compensation guidelines are designed to maintain incentives for market participants to supply services during periods of market stress, ultimately protecting customers from prolonged exposure to high prices.  

After careful consideration, the Commission has determined that SHL is entitled to $11,206,127 in compensation for direct and opportunity costs incurred during the administered price period. 

This compensation is being awarded to cover the losses SHL experienced while continuing to provide essential services to the energy market during the period.

The Commission will notify the Australian Energy Market Operator (AEMO) of the total compensation amount payable to SHL. AEMO will then recover the compensation cost from market customers who purchased energy from the spot market in the relevant eligibility periods and cost recovery regions. 

More information, including the final decision document, can be found here. Information about other claims made in relation to the June 2022 event can be found here. 

Media: Jessica Rich, 0459 918 964, media@aemc.gov.au